Johnson Corporation began 2016 with inventory of 27,000 units of its only product. The units cost $7 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2016:

a.Purchased 135,000 additional units at a cost of $12 per unit. Terms of the purchases were 2/10, n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b. shipping point and freight charges of $0.50 per unit were paid by Johnson.

b.2,700 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $0.50 per unit it had paid on the original purchase. The units were defective and were returned two days after they were received.

c.Sales for the year totaled 130,000 units at $18 per unit.d.On December 28, 2016, Johnson purchased 6,700 additional units at $10 each. The goods were shipped f.o.b. destination and arrived at Johnson's warehouse on January 4, 2017.

e.29,300 units were on hand at the end of 2016.Required:1.Complete the below table to determine the ending inventory and cost of goods sold for 2016.(Do not round your intermediate calculations. Amounts to be deducted should be indicated with a minus sign.)

2.Assuming that operating expenses other than those indicated in the above transactions amounted to $184,000, determine income before income taxes for 2016.(Do not round your intermediate calculations.)